The Enforcement Directorate (ED) has filed charges against four operators for violating the Foreign Exchange Management Act (FEMA), totalling nearly Rs 43 billion in the 2G spectrum case.
The agency has named Swan Telecom, Loop Mobile, Loop Telecom and S-Tel in this regard.
This comes after the Central Bureau of Investigation (CBI) filed its first charge sheet in the 2G spectrum allocation issue. The ED has said that Swan issued shares to a foreign investor-Etisalat-and an Indian investor-Genex Exim-for a substantial value. It also said equity issued to Genex Exim was an indirect foreign investment as funds were brought in from Dubai through an intermediary. The agency said the FEMA violations by the company amounted to Rs 36.08 billion.
The ED has charged Loop Mobile Rs 4.31 billion in this regard. In S-Tel’s case, the ED said the company did not refund the balance of the FDI to the foreign investor, Bahrain Telecom, within the stipulated period of time, resulting in FEMA violations of Rs 9.66 million.
Representatives of these companies will have to appear before ED officials. If the charges against them stand, the fine imposed may amount to three times the sum involved in such violations or up to Rs 0.2 million, where the amount of contravention would not be quantifiable.
